Description of this paper

Question;StarMart manufactures skateboards. The company has a highly;automated production process, so Itallocates;manufacturing overhead based on machine hours. StarMart expects to incur;$340,000 ofmanufacturing overhead costs and to use 5,000 machine hours during;2009.;At the end of 2008;StarMart reported the following inventories;Raw Materials Inventory $30,000;Work in Process Inventory $27,000;Finished Goods Inventory $21,000;During January 2009, StarMart actually used 400 machine hours;and recorded the following transactions;a. Purchased materials on account, $41,000.;b. Used direct materials, $39,000;c. Manufacturing labor cost incurred was $40,000, 90% direct labor;and 10% indirect labor.;d. Used indirect materials, $3,000;e. Incurred other manufacturing overhead cost of $15,000;(credit Accounts Payable).;f. Allocated manufacturing overhead for January 2009.;g. Cost of completed skateboards, $95,000.;h. Sold $192,000 of skateboards on account, cost of;skateboards sold, $101,400 (StarMart uses a;perpetual inventory system).;i. Operating expenses incurred, excluding depreciation was;$52,000 and depreciation was $7,000.;1.;Compute StarMart?s predetermined manufacturing overhead rate for 2009 showing;the entire equation with numerator and denominator in good form.;2.;Create T accounts for the following accounts (a two column table can be used;for T account): Raw Materials Inventory, Work in Process Inventory, Finished;Goods Inventory, Cost of Goods Sold, Manufacturing Overhead, Accounts;Receivable, Sales, Accounts Payable and Wages Payable. Post the inventory;balances and transactions to these accounts and calculate the ending balances.;3.;Record the journal entry to close the ending balance of Manufacturing Overhead.;Post your entry to the T-accounts;4.;Was manufacturing overhead over/underapplied and by how much? (5 points);5.;Prepare a Schedule of Cost of Goods Manufactured (in good form) for the month;of January;6.;Prepare a Schedule of Cost of Goods Sold (in good form) for the month of;January;7.;Prepare an Income Statement for the month of January (in good form). The;company is in the 30% income tax bracket.

Paper#41876 | Written in 18-Jul-2015

Price : $24

STUDENTS MERIT

CLIENTS’ SUPPORT

MAKE MONEY

CONNECT WITH US

Disclaimer : Studentsmerits.com provides solutions that are custom written and that can only be used for research and reference purposes only. Using this service does not contravene your academic honesty or insititution\'s policies. The following are the ways you are supposed to use our services: (i) As a reference for indepth understanding of the subject. (ii) As a source of ideas / reasoning for your own research (if properly referenced). (iii) For editing and paraphrasing (check your institution\\\'s definition of plagiarism and recommended paraphrase). (iv) Direct citing (if referenced properly).